IPA (IMMUNOPRECISE ANTIBODIES LTD.) (the “Company” or “IPA”)
(NASDAQ: IPA), an artificial intelligence-driven biotherapeutic
research and technology company, today reported financial results
for its second quarter of the 2024 fiscal year (“FY24”), which
ended October 31, 2023.
"We report our third consecutive quarter of record revenue,
reflecting both existing and new customers’ needs for our
end-to-end support of antibody discovery through development,
designed to reduce risk, cost and time. Our laboratory’s B Cell
Select® platform, as well as our manufacturing facility with its
expanded capacity, continue to experience strong growth.
Additionally, we have reduced our cash burn from $1.6 million FY24
Q1 to $0.7 million in FY24 Q2, reflecting the impact of our revenue
growth and strategic cost cutting while we continue to invest in
capabilities to support our clients. Our subsidiary, BioStrand,
recognized early revenue from LENSai-driven client programs and
continues to progress towards the next phase of the launch of their
LENSai portal and Software as a Service (SaaS) platforms. With our
Talem assets, we remain committed to our strategy of driving
revenue through out-licensing opportunities and are pleased to
provide an update on the Talem asset highlighted in September’s
earnings call, as we have recently received and executed a Letter
of Intent to engage in a Material Transfer Agreement (MTA) for this
asset. We also continue to leverage Talem’s strategic partnerships,
which are contributing to our contract research revenue and
generating new client opportunities for BioStrand," said Dr.
Jennifer Bath, CEO of ImmunoPrecise Antibodies.
Business Highlights and Corporate Update
IPA's strategy to offer a fully integrated suite of antibody
discovery and development services is showing clear results. In the
recent quarter, the Company recorded revenues of $6.2 million and
$11.8 million for the three- and six-months ending October 31,
2023, respectively. These figures mark increases of 18.6% and 19.9%
compared to the $5.2 million and $9.9 million revenues during the
same periods in 2022. This is the second consecutive quarter in
which we have experienced a year-over-year increase in revenue of
approximately $1 million. Specifically, IPA Canada's laboratory
revenue rose by 17%, while our Utrecht, Netherlands manufacturing
facility experienced a significant 43% growth in revenue,
reinforcing our expansion strategy to meet customer needs.
BioStrand is generating fee-for-service revenue through its
LENSai platform and is progressing in the development of commercial
products to meet the needs of IPA's client base of over 600
companies. During FY24 Q2, BioStrand introduced two key services:
epitope mapping and binning. These are expected to be fully
integrated into IPA’s discovery offerings by the end of the current
quarter. This advancement is a significant step towards the
upcoming rollout of the LENSai portal to all IPA clients, followed
by the public launch of BioStrand's comprehensive SaaS
platform.
The Company’s decrease in R&D spending reflects the previous
investments to develop the internal therapeutic Talem assets, which
are now in the next phase of revenue generation, and now primarily
represent BioStrand R&D. Efforts are underway to pursue
out-licensing opportunities for those internally developed Talem
assets. We recently received and executed a Letter of Intent (LOI)
for Talem to engage in a Material Transfer Agreement (MTA) on an
asset targeting an incurable, progressive disease, an asset
previously highlighted in our FY24 Q1 earnings call. The MTA,
targeted for execution prior to the end of a six week deadline,
will enable the partner to conduct an independent review of the
asset under contemplation of an out-licensing. Simultaneously, the
Company's marketing partnerships are enhancing revenue in contract
research and creating new opportunities in BioStrand.
The Company recently completed a 1.265 million common share
capital raise, in part for additional wet lab capacity to meet
customer demand and to advance R&D for our BioStrand
initiatives in response to customer needs in the competitive
artificial intelligence landscape. We believe our revenue growth,
along with positive customer traction on our complementary
BioStrand products, reinforce our strategy of long-term value
creation through cultivating and expanding our strong customer base
while providing higher margin revenue growth.
Second Quarter FY24 Financial Results
- Revenue: Total revenue was $6.2 million, compared to
revenue of $5.2 million in fiscal year 2023 (“FY23”) Q2. Project
revenue generated $5.5 million, including $0.2 million of work
completed by BioStrand, and compared to $4.7 million in FY23 Q2.
Product sales and cryostorage revenue were $0.7 million, compared
to $0.5 million in FY23 Q2.
- Research & Development (R&D) Expenses: R&D
expenses were $1 million, compared to $5 million in FY23 Q2, with
the decrease reflecting reduced expenditures related to the
Company's PolyTope® antibody combination therapy.
- Sales & Marketing (S&M) Expenses: S&M
expenses were $0.9 million, compared to $0.8 million in FY23
Q2.
- General & Administrative (G&A) Expenses: G&A
expenses were $3.3 million, compared to $3.8 million in FY23 Q2.
This decrease reflects a reduction of $0.5 million in G&A
professional fees.
- Net Loss: Net loss of $2.6 million, or $(0.10) per share
on a basic and diluted basis, compared to a net loss of $7.4
million or $(0.30) on a basic and diluted basis in FY23 Q2.
- Liquidity: $6.1 million of total cash, cash equivalents
and marketable securities, with a reduced cash burn of $0.7 million
for FY24 Q2, compared to cash burn of $1.6 million for FY24
Q1.
*Expressed in Canadian dollars, unless otherwise indicated.
Conference Call and Webcast Details
The Company will host a live conference call and webcast to
discuss these results and provide a corporate update on Thursday,
December 14, 2023, at 10:30AM ET.
To participate in the call, please dial 1-888-550-5658
(domestic) or 1-646-960-0289 (international) and provide Conference
ID 9236374.
The conference call will be webcast live and available for
replay via a link provided in the Events section of the Company’s
IR pages at https://www.immunoprecise.com/investors.
Attendee URL: For inclusion in your invitations to shareholders
and guests. https://events.q4inc.com/attendee/905281713
About ImmunoPrecise Antibodies Ltd.
ImmunoPrecise Antibodies Ltd. has several subsidiaries in North
America and Europe including entities such as Talem Therapeutics
LLC, BioStrand BV, ImmunoPrecise Antibodies (Canada) Ltd. and
ImmunoPrecise Antibodies (Europe) B.V. (collectively, the “IPA
Family”). The IPA Family is a biotherapeutic research and
technology group that leverages systems biology, multi-omics
modelling and complex artificial intelligence systems to support
its proprietary technologies in bioplatform-based antibody
discovery. Services include highly specialized, full-continuum
therapeutic biologics discovery, development, and out-licensing to
support its business partners in their quest to discover and
develop novel biologics against the most challenging targets. For
further information, visit www.ipatherapeutics.com.
Cautionary Statement Regarding Forward Looking
Information
This news release contains “forward-looking statements” and
“forward-looking information” within the meaning of applicable
United States securities laws and Canadian securities laws
(collectively, “forward-looking statements”). Forward-looking
statements are often identified by the use of words such as
“potential”, “plans”, “expects” or “does not expect”, “is
expected”, “estimates”, “intends”, “anticipates” or “does not
anticipate”, or “believes”, or variations of such words and phrases
or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements contained in this news release include,
but are not limited to, statements regarding our revenue growth,
out-licensing and new client opportunities, strategic partnerships,
expansion strategy, the integration of BioStrand services and the
LOI and MTA with Talem and our ability to create long-term value
for customers. In respect of the forward-looking statements
contained herein, IPA has provided such statements in reliance on
certain assumptions that management believed to be reasonable at
the time.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements stated herein to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks, including risks discussed in
the Company’s Annual Information Form dated July 10, 2023 (which
may be viewed on the Company’s profile at www.sedarplus.com), and
the Company’s Annual Report on Form 40-F, dated July 10, 2023
(which may be viewed on the Company’s profile at
www.sec.gov/edgar). Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results,
performance, or achievements may vary materially from those
expressed or implied by the forward-looking statements contained in
this news release. Accordingly, readers should not place undue
reliance on forward-looking statements contained in this news
release. The forward-looking statements contained in this news
release are made as of the date of this release and, accordingly,
are subject to change after such date. The Company does not assume
any obligation to update or revise any forward-looking statements,
whether written or oral, that may be made from time to time by us
or on our behalf, except as required by applicable law.
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